Saving on your 2008 taxes

1. Individuals - IRA's - By April 15th

2008 Individual & Non-Working Spouse $5,000
Catch Up $1,000
Total: $6,000
(2009 Contribution $6,000 + $1,000 catch-up = $7,000)

2. Small Business Owners - SEP IRA's - By Oct. 15th

(May be established and funded at the time of tax return filing which also includes extensions --- October 15, 2009)
Businesses can utilize these funds until their extended tax filing
A 25% DEDUCTION MAY BE OBTAINED UP TO A MAXIMUM DEDUCTION OF $46,000.

2008 = $46,000
(2009 = $49,000)

What are some commonly missed last-minute tax deductions?

1. Long Term Care Insurance

· Individual Medical Expense Deduction- Eligible for the medical expense deduction subject to the floor of 7.5% of adjusted gross income.

· Self-Employed Tax Payers- 100% tax deductible.

2. Refinance Mortgage by December 31, 2008

· Deduct Previously Amortized Points

3. SECTION 529 Plans: NYS & CT Plans

· State Tax-Deduction with NYS & CT Plans (Residents Only)
$5,000 state tax deduction per person
$10,000 (Married couples filing jointly)
(New Jersey Residents ~ No State Deduction)

4. Net Investment Losses

· You can deduct up to $3000 per year against ordinary income
· You can also carry forward balance to future years

5. Charitable Donations:

All Contributions Require Receipts
· Donated items, such as cars, clothing, and household goods must be in "good used condition."

6. Tax Incentives for Energy Efficiency:

· Go Solar ~ 30% Credit Up to $2,000 in 2008
Allows you to claim the cost of installing solar water heating, or fuel-cell equipment in your home.
** No Credit is Allowed for a Swimming Pool or Hot Tub.**

In 2009 - No Cap on Credit!! (30% Credit of Systems Entire Cost)